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bags, which can cost an airline about $100
per bag to return to its owner. This can add
up quickly, so airlines looking to reduce the
cost of mishandled bags increasingly seek out
airport partners that can support that goal
technologically.
Airports with baggage reconciliation technology can also help airlines comply with
IATA Resolution 753, which mandates airlines
to track bags from initial check-in to arrival.
One main gap for airlines is having this information from smaller airports while keeping
their costs minimal, i.e. messaging and infrastructure. Industry solutions like SITA Bag
Manager Lite can provide a cost-effective way
for airlines, airports and ground handlers to
reconcile, track and manage baggage - all in
compliance with IATA's requirements. In fact,
SITA data shows that where bags are tracked
at check-in and loading, mishandling rates
for airlines were up to 60% lower.

Now is the Time to Invest
in Technology

Investing in baggage reconciliation technology
might seem strange during a pandemic - after
all, passenger numbers drastically decreased
over the past year. However, the severe slowdown in 2020 forced the air transport industry to focus on driving new cost efficiencies.
Adding to the pressure, airlines and airports
had to rapidly incorporate new health measures like touchless passenger processing and
the handling of new health protocols. To solve
new cost efficiency and safety challenges, the
industry turned to technology, and in many
cases, is reprioritizing where they invest.
Among the key findings from SITA's
recently published 2020 Air Transport IT

Insights is an accelerated investment in
automated passenger processing. Many airlines and airports were able to capitalize on
existing trends toward touchless and mobile
technology and have made significant strides
in implementing new solutions that will help
position them for impending recovery.
SITA data shows that 45% of baggage
mishandling occurs at the transfer station,
so having good data about inbound baggage
from regional airports is key in reducing this
problem. Providing better visibility of where
bags are in their journey helps to ensure that
bags are then transferred to the proper outbound flight. But it's not just multi-leg bags
and passengers that benefit - point-to-point
trips can as well. Working with a better data
set means that several decision-making systems can also be automated. Re-flighting bags
onto new flights when necessary and notifying passengers via self-service help to further
reduce costs on arrival.
SITA's report also highlights how airports
and airlines are implementing a touchless at
check-in process, including baggage services,
a top priority. Extending automation to baggage reconciliation can reduce
the number of mishandled bags
and their associated costs by up
to 20%. As the industry continues to recover, the focus will
shift to ensuring the biggest
return on digital investments,

meaning now is the best time to invest in these
core technologies.

Looking Ahead

Airports are where great journeys begin.
While 2020 was incredibly difficult, it gave
us the opportunity to look at new ways to
drive improvement and efficiencies to the
way airports operate. For regional airports
specifically, implementing even the most basic
baggage reconciliation system can support
recovery by reducing handling errors, increasing operational efficiency, and improving passenger satisfaction. Baggage reconciliation
technology is a piece of the essential technology strategy airports should implement
as they aim to attract new airlines and meet
passenger's post-COVID expectations.

ABOUT THE AUTHOR:

Peter Drummond joined SITA in 2003, starting in his initial role as systems engineer
and rising to development manager for BagManager. He has led the delivery of
multiple baggage solutions to customers globally - including Hong Kong, Dublin,
London Gatwick and Singapore. More recently, Drummond has managed the
WorldTracer baggage tracing and repatriation service and he now leads the SITA
Baggage Portfolio.

APRIL 2021

AviationPros.com

http://www.AviationPros.com

april2021

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